Starbucks disclosed plans to close approximately 250 underperforming cafes in North America, equating to roughly 1% of its more than 18,000 locations in the region. The announcement represents the second round of closures under CEO Brian Niccol’s leadership during his two-year tenure.
Mike Grams, the company’s chief operating officer, stated in an employee communication that the closures were determined after a comprehensive review of the North American portfolio. Grams noted that selected locations were identified where Starbucks believed it could not consistently deliver its desired customer experience or achieve acceptable financial performance.
The coffee chain adjusted its fiscal 2026 outlook, reducing its net new opening projection to 440 locations from a prior range of 600 to 650 cafes. The company indicated that future expansion will primarily occur in international markets. Most closures are expected to be completed before the end of fiscal 2026, which concludes later in the month.
Starbucks projected approximately $300 million in restructuring charges stemming from the closures. Of this amount, $200 million relates to early lease exit costs and employee separation benefits, while the remaining $100 million constitutes noncash charges from asset disposal and impairment. The company maintained that it continues to identify significant longer-term growth prospects in North America and is developing a pipeline of new coffeehouse locations.
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